Kiloutou : New year, new bond issue

As last year, Kiloutou was one of the first issuers to enter the primary market. This time, the group has completed a placement of €550m (vs. €500m initially envisaged), divided into two tranches: €400m maturing in 2031 (6.25NC2, fixed rate) and a tap of €150m on its FRN 2030 issued a year ago.
The price-talk on the 2031 notes started at low 5s. The guidance was then proposed at 5.0%-5.25%, before being lowered again to 4.875%-5.0%. This was apparently considered a little too aggressive, since the final pricing was set at 5% with an upsize of EUR 50m.
The tap on the FRN (E+350bp) was closed at 100.25%, corresponding to an annual yield of around 6% based on the current coupon (6.386%, but which should be revised down slightly on 15 March).). The IPT started at 100%.
We have a Stable Credit Opinion on Kiloutou and are beginning to cover these new bonds with a Neutral recommendation.

See our sector study on Loxam, Kiloutou and Boels, published on 4 November.